homefinance NewsBudget 2024: Overall tax revenues expected to grow at 12.5% this financial year, says CEA
Budget 2024: Overall tax revenues expected to grow at 12.5% this financial year, says CEA
Budget 2024: The government is focusing on broadening the tax base to meet revenue targets while implementing measures to simplify the tax payment process for the citizens, he told CNBC TV18 in a post-budget interview.
Chief Economic Adviser (CEA) V. Anantha Nageswaran on Thursday, February 1, said the overall tax revenues are poised to grow at 12.5% in the current financial year. This growth is underscored by a tax buoyancy of 1.1%, highlighting the resilience of the economy, he said in an post-Budget interview with CNBC-TV18.
An essential highlight from the interview was the absence of tax rate increases in both the current and preceding fiscal years.
Instead, the government is focusing on broadening the tax base to meet revenue targets while implementing measures to simplify the tax payment process for the citizens, he said.
Further elaborating on the financial landscape, Revenue Secretary Sanjay Malhotra shed light on the surge in revenues attributed to the implementation of a 28% goods and services tax (GST) on online gaming.
This strategic move, introduced from October 1, 2023, has resulted in a sixfold increase in revenue within just three months.
Malhotra provided key insights into the impact of the 28% GST on online gaming.
He emphasised that the government has witnessed an average monthly revenue of ₹1,200 crore, equivalent to an extraordinary ₹200 crore per month.
Nitin Gupta, the Chairman of the Central Board of Direct Taxes (CBDT), highlighted that the revised estimate for direct tax numbers is Rs 19.45 lakh crore, showing a growth of approximately 17% compared to the previous year's achievement of Rs 16.63 lakh crore. Gupta stated, "Our budget estimate (BE), which was laid down in the last year's budget was Rs 18.23 lakh crore. So, we are moving ahead with Rs 1.22 lakh crore more, despite paying 11% more refunds in this current financial year. So, our growth over what we have achieved last year of Rs 16.63 lakh crore has been 17%.So with this number, we would be having the highest direct tax to GDP ratio from 2000-2001 onwards till date. For the next year, the budget estimate is Rs 21.98 lakh crore which is 13% higher than Rs 19.45 crore. So, there is a sizable increase as far as direct tax is concerned.”
Finance Minister Nirmala Sitharaman, presented the interim Budget on Thursday, February 1, outlining the government's approach to economic stability and revenue generation.
(Edited by : Shoma Bhattacharjee)
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